Fed Hike Bets Eased as US Jobs Report Disappoints

A softer-than-expected US jobs report led to a surge in stocks and a decline in bond yields, sparking speculation that the Federal Reserve may not raise interest rates as quickly as anticipated.

The Bureau of Labor Statistics reported a 29,000 increase in nonfarm payrolls for September, missing all estimates in a Bloomberg survey of economists. The unemployment rate rose to 4.2%, partly due to a growing workforce.

Experts pointed out that the weaker-than-expected jobs report could put an October Fed hike 'firmly on the back foot.' Seema Shah at Principal Asset Management stated, 'A softer-than-expected jobs report should put an October Fed hike firmly on the back foot.'

The improved sentiment in markets was also driven by a decline in oil prices and a drop in yields. The S&P 500 rose 0.8% as of 9:31 am New York time, while the Nasdaq 100 increased 1%. Bitcoin and Ether both surged, rising 2.4% to $86,642.95 and 2% to $2,752.5, respectively.